Carpenter Technology (NYSE:CRS) has done alright since my December 13 write-up, climbing more than 22% but trailing Precision Castparts (NYSE:PCP) and Allegheny Technologies (NYSE:ATI) (while outperforming specialty alloy companies Universal Stainless (NASDAQ:USAP) and Haynes International (NASDAQ:HAYN)).
There have been some challenges for the company as its major aerospace
end market worked down inventories of engine parts and fasteners, but
lead times are expanding, nickel prices are rising, and Carpenter is
nearly finished with the addition (and customer qualification) of a new
premium/super-premium facility in Athens, Alabama.
On the negative
side, Carpenter already trades close to its historical average EBITDA
multiple (around 8.5x). On a more positive note, the order books of the
major commercial aircraft OEMs stretch out for years and should support
double-digit growth for several years.
Read more here:
Carpenter Technology Ready For Demand And Free Cash Flow Growth
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